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Wells Water Systems recently reported $10,500 of sales, $4,500 of operating costs other than depreciation, and $950 of depreciation. The company had no amortization charges,

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Wells Water Systems recently reported $10,500 of sales, $4,500 of operating costs other than depreciation, and $950 of depreciation. The company had no amortization charges, It had $3,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 25%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to spend $750 to buy new fixed assets and to invest $250 in net operating working capital. How much free cash flow did Wells generate? Select the correct answer. Ca. $3,737.50 Ob. $3,761.90 Oc. $3,755.80 Od. $3,749.70 Ce. $3,743.60

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